Vendor Managed Inventory System with Partial Backordering for Evaporating Chemical Raw Material

Consider a supply chain including a refinery producing evaporating chemical product, an exporter and one or some engine oil producers outside of exporter’s country. Exporter to decrease his inventory cost uses vendor managed inventory system implemented between refinery and exporter. This paper develops two models with partial backordering for evaporating chemical productdeveloped in a two-layer chain including single refinery and single exporter with one product before and after utilizing vendor managed inventory policy respectively. Demand and partial backordering rates are deterministic and constant. A numerical example is provided to illustrate the applicability of the proposed model and solution method.